Millions of Britons risk having their identity stolen because they have failed to cancel credit facilities they no longer use. At the end of last year, 31.5 million people in the UK held an average of 2.4 personal credit and charge cards, but about one in three is no longer active.

Mel Mitchley of online credit report service Callcredit says: 'This means the facility is still available and a fraudster can quite easily use it to rack up debts in someone else's name without fear of early detection. And the risk is not just with existing credit facilities, it's also with ones offered through direct mail. If you've been pre-approved for a credit or store card and you throw that information in the bin without shredding it, you're handing a fraudster an open invitation to impersonate you and get credit in your name.'

It can take a typical victim 60 hours' work to prove they have suffered ID fraud and, in extreme cases, it can cost £8,000 and 300 man-hours to clear their name. Mitchley advises people to take care of their ID by checking their credit file, cancelling unused credit facilities and shredding personal documents before throwing them away. Readers can get a month's free trial of Callcredit Check's credit monitoring and ID fraud alert service by logging on to www.callcreditcheck.com.

Savers offered bond boon

Birmingham Midshires is offering a savings bond paying a fixed rate of 5.26 per cent gross/AER for one year, with a minimum deposit of just £1. Customers who prefer to be paid interest monthly will earn a fixed rate of 5.14 per cent gross. To open a bond, call Birmingham Midshires on 0845 602 2828. The Investment Hotline is open Monday to Saturday 8.00am to 8.00pm or visit www.askbm.co.uk. Data provider Moneyfacts says savers who have £1,000 to deposit for a year can earn 5.27 per cent gross from West Bromwich Building Society (www.westbrom.co.uk), while those who have £2,000 to tie up for five years can earn 5.5 per cent gross, paid annually, from Heritable Bank (www.heritable.co.uk).

If you want to receive your interest monthly over five years, Leeds Building Society has launched a new fixed-rate income bond which guarantees to pay 5.2 per cent gross until 31 July 2011 and a minimum opening balance of £1,000. Customers have access to up to half the initial amount invested, without notice or penalty, at any time. Call 08450 540 995 or visit www.leedsbuildingsociety.co.uk.

Bad credit no mortgage bar

Borrowers with impaired credit records who want to buy a shared ownership property may now be able to take out a mortgage from Leeds Building Society. The loan allows applicants to borrow 100 per cent of their share of the property without any higher lending charge. The Leeds will consider applicants with county court judgments (maximum of £3,000 and none in the past six months), mortgage or rent arrears (maximum of two missed payments in the past year) and defaults.

But those who have gone bankrupt or taken out an individual vouluntary arrangement will not be considered. Interest is set at the Leeds' standard variable rate plus 0.2 per cent, but borrowers who do not buy the society's home insurance will pay 0.24 per cent more. The loan has a £399 completion fee and early repayment charges of 3 per cent in the first year, 2 per cent in the second and 1 per cent in the third. For more information, call into Leeds' branches, visit www.leedsbuildingsociety.co.uk or call the mortgage hotline, on 08450 540 994.

Halifax best for interest...

The Halifax is paying 5 per cent gross indefinitely on balances up to £2,500 in its new High Interest current account. This contrasts with the 0.1 per cent typically paid on current accounts from the big four banks - Barclays, Lloyds TSB, HBOS and NatWest - and the Halifax estimates that a customer with one of these could receive up to £1,065 more interest over the typical life of their current account by switching.

...but not overdrafts

However, Stuart Glendinning of price comparison website www.moneysupermarket.com , says that Alliance and Leicester Direct Premier and the Nationwide, which pay 5 per cent (fixed until the end of June 2007) and 4.25 per cent respectively for accounts in credit, offer more attractive overdraft rates than the Halifax. The Halifax charges 15.9 per cent for authorised overdrafts, while Alliance and Leicester account charges 0 per cent for overdrafts in the first year, then 5.9 per cent thereafter, while the Nationwide charges 7.75 per cent.